FatAlpha’s performance in February was mainly affected by one of it’s largest positions: Trinity Industries. I had reduced the position some time ago, however I became more bullish on the stock following the Q3 results and conference call in October. This was a company that had double-digit earnings growth, beating expectations, its own guidance and trading at a single digit … [Read more...]
Letters are archived here with significant delay. Sign-up on the right to receive the free letter once a month in your mailbox.
The Winds Of Change FatAlpha Active portfolio dropped in line with the market last month (-5%), while the Market Neutral portfolio jumped +3%. Since inception in September the Market Neutral strategy is up almost 7%. And not only is zero leveraged used, it has been underinvested. While the target gross exposure is 100% it has been running mostly at under 50%! What … [Read more...]
Are you a believer? When I talk about FatAlpha, I always tell people who look at my strategy to ignore the stellar performance. This is something any investor should do when they look at any fund or portfolio manager. Two of the most important questions are: a) Do you currently have an allocation or interest in the manager’s investment universe? Someone interest in bonds … [Read more...]
November saw the FatAlpha Active portfolio cover October’s lost ground as it rose 2.6% versus 0.4% for the S&P 500. The position in Abercrombie & Fitch (ANF) rose 21% on an earnings beat while Stage Stores (SSI) dropped -20%. The loss on SSI was larger but news of insider buying activity and a monster 10% dividend yield brought in buyers that took the stock from $6 to … [Read more...]
I hope my American friends had a fun Halloween. The entire month of October was Halloween to me as the Active strategy witnessed volatility with the alpha gyrating in a 6% range (specifically -3% to +3%). When all was said and done, the market had a monster up month with the S&P 500 rising 8.9%, while the FatAlpha Active portfolio rose 6.3%. The best performers were … [Read more...]
Despite the decline in the portfolio, it is the 12th quarter the strategy has beat the S&P 500 out of 13 quarters since inception. During September, FatAlpha dropped -2.39% vs -3.01% for the market. Over the last 39 months, the S&P has declined during 12 of these. The strategy has outperformed in 10 of those months with an average decline of -0.81% vs -2.52% for the … [Read more...]
Since the inception of FatAlpha, this is the 11th month the S&P has had a down month. Once again the strategy outperformed as the portfolio dropped only 3.93% vs 6.13% for the market. It is the 9th time out of 11 that the strategy has done this. This puts year to date return at -1.7% vs -2.7% for the benchmark. Month on month only Cooper Tires and Avnet … [Read more...]